1027

GENERAL EXEMPTION NO. 25& 26

V.

EXEMPTION TO GOODS CAPTIVELY CONSUMED.

GENERAL EXEMPTION NO. 25

Exemption to goods manufactured in a factory and captively consumed for the manufacture of final
products, subject to conditions of specified notifications.
[Notifn. No. 83/92-CE dt.16.9.1992 as amended by Notifn. Nos. 79/95 and 7/98].
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises
and Salt Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the
public interest so to do, hereby exempts all excisable goods manufactured in a factory and used
within the factory of production (hereinafter referred to as inputs) for the manufacture
of final products, cleared in accordance with the provisions contained in any of the notifications
mentioned in the Schedule to this notification, from the whole of the duty of excise leviable thereon
which is specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986).
Explanation - For the purpose of this notification inputs does not include(i)

machines, machinery, plant, equipment, apparatus, tools or appliances used for

producing or processing of any goods or for bringing about any change in any
substance in or in relation to the manufacture of the final products;

(ii)

packaging materials in respect of which any exemption to the extent of the duty
of excise payable on the value of the packaging materials is being availed of for
packaging any final products;

(iii)

packaging materials or containers the cost of which is not included in the

assessable value of the final products under section 4 of the Central Excises and
Salt Act, 1944 (1 of 1944);
SCHEDULE

1.
2.
3.
4.

No.164/87-Central Excises, dated the 10th June, 1987.

No.62/95-Central Excises, dated the 16th March, 1995 (only S.No.1).
No.63/95-Central Excises, dated the 16th March, 1995 (only S.No.2 and 11).
No.64/95-Central Excises, dated the 16th March, 1995 (only S.Nos. 3,5 and 8).

GENERAL EXEMPTION NO. 26

Exemption to capital goods and all goods (other than LDO, HSD and petrol) captively consumed
for manufacture of final products (other than matches).
[Notifn. 67/95-CE dt.16.3.1995 as amended by Notifn. Nos. 20/96, 11/97, 59/97, 32/00, 35/00, 31/
01, 35/01, 11/02, and 16/03].
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises
and Salt Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the
public interest so to do, hereby exempts (w.e.f. 1.4.03 for section 5A of the Central Excises and Salt

GENERAL EXEMPTION NO. 26

1028

Act, 1944 (1 of 1944) read) (section 5A of the Central Excise, Act, 1944 (1 of 1944), read with subsection (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance Act, 1957
(58 of 1957), (herein after referred to as the said Special Importance Act),
(i)

capital goods as defined in CENVAT Credit Rules, 2002 manufactured in a

factory and used within the factory of production;

(ii)

goods specified in column (1) of the Table hereto annexed (hereinafter referred
to as "inputs") manufactured in a factory and used within the factory of
production in or in relation to manufacture of final products specified in column
(2) of the said Table;

from the whole of the duties of excise leviable thereon which is specified in the Schedules to the
Central excise Tariff Act, 1985 (5 of 1986) or additional duty of excise leviable thereon which is
specified in the First Schedule to the said Special Importance Act.
Provided that nothing contained in this notification shall apply to inputs used in or in
relation to the manufacture of final products which are exempt from the whole of the duty of excise
or additional duty of excise leviable thereon or are chargeable to nil rate of duty, other than those
goods which are cleared.
(i)
(ii)
(iii)
(iv)
(v)
(vi)

to a unit in a Free Trade Zone, or

to a hundred percent Export Oriented Undertaking or
to a unit in an Electronic Hardware Technology Park, or
to a unit in a Software Technology Park, or
under notification No. 108/95-Central Excise dated the 28th August, 1995, or
by a manufacturer of dutiable and exempted final products, after discharging the
obligation prescribed in rule 6 of the CENVAT Credit Rules, 2001
Table

Description
Inputs

Description of final products

(1)

(2)

All goods falling under the First Schedule

to the Central to the Central Excise Tariff Act, 1985
other than the (5 of 1986), other than light diesel oil high speed
diesel oil and motor spirit, commonly known as petrol.

the

than

All goods falling under the First Schedule

Excise Tariff Act, 1985 (5 of 1986),
following namely:(i) matches;
(ii) fabrics of cotton or man made fibres
falling under
Chapter 52, Chapter 54 or Chapter 55 of
First Schedule
to the said Act;
(iii) fabrics of cotton or man-made fibres
falling under
heading No.58.01, 58.02, 58.06 (other
goods falling
under sub-heading No.5806.20), 60.01 or
following namely:-60.02 (other than goods
falling under sub-heading No.6002.10) of

1029

GENERAL EXEMPTION NO. 27

(1)

(2)
the First Schedule to the said Act.w.e.f. 1.4.03, description of Final Product
may be rea as [ All goods falling under the
First Schedule to the
Central Excise Tariff Act, 1985, other
matches ].

than

GENERAL EXEMPTION NO. 27

Exemption to all the excisable goods captively consumed for the manufacture of specified goods.
[Notifn. 10/96-CE dt.23.7.1996, as amended by Notifn. Nos. 11/00, 41/04, 18/06, 48/06, 39/11].
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises
and Salt Act, 1944 (1 of 1944), the Central Government being satisfied that it is necessary in the public
interest so to do, hereby exempts all goods falling within the Schedule to the Central Excise Tariff
Act, 1985 (5 of 1986), from the whole of the duty of excise leviable thereon which is specified in the
said Schedule, subject to the condition that the said goods are consumed within the factory of their
production in the manufacture of goods specified in column (3) of the Table hereto annexed and
falling under Chapter, heading No. or sub-heading No. of the said Schedule as specified in the
corresponding entry in column (2) of the said Table.
TABLE
________________________________________________________________________________________________________
S.No.

Chapter or Heading No. or

(1)

(2)

1.
2.
3.
4.
5.
6.
7.

15 (except 1517 10 22,

1520 00 00, 1521 and 1522)
21
2202
23
2845 10 00
2853 00 30
3003, 3004

8.
9.

31
4011, 4012

10.

4701 to 4706

11.
12.

4801
64

13.
14.
15.

71
7319
7321 or 7418 19 0r 7419 99

Description
sub-heading No.
(3)
All goods
All goods
Fruit pulp based beverages
Animal feed
Heavy water
Compressed air
Medicaments (including veteri
nary medicaments)
Fertilisers
Pneumatic tyres of a kind used on
bicycles, cycle-rickshaws
and three wheeled powered cyclerickshaws
Wood pulp and pulp of other fi
brous cellulosic materials
News print
Footwear of retail sale price not
exceeding Rs.250 per pair
and hawai chappal (other than of
leather) that is to say,
chappals known commercially as
"hawai chappals".
Rough synthetic gem stones
Sewing needles
Kerosene burners, kerosene

GENERAL EXEMPTION NO. 28

(1)

(2)

16.

8539

17.

9021

18.

9608

19.

1030
(3)

1905 31 00 or 1905 90 20

stoves and wood buring stoves,

or iron or steel copper or copper
alloy.
Vacuum and gas filled bulbs of
value not exceding Rs.10
per bulb.
Artificial limbs and rehabilita
tion aids for the handicapped
Ball point pens including refills
for ball point pens and parts
thereof
Biscuits cleared in packaged form with
per kg retail sale price equivalent not
exceeding Rs. 100.

Explanation.- retail sale price

shall have the same meaning as
defined in column (3) against S.
No. 18A of notification no.3/
2006-Central Excise dated 1st
March,2006 published vide G.S.R.
93 (E), dated the 1st March, 2006
2. Nothing contained in this notification shall apply to any inputs or intermediate goods other
than sugar syrup or cream used in the manufacture of goods mentioned at S. No. 19.
________________________________________________________________________________________________________

GENERAL EXEMPTION NO. 28

Exemption to goods manufactured in a workshop and used within the factory for repairs and
maintenance of machinery installed therein.
[Notifn. No.65/95-CE dt.16.3.1995.].
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises
and Salt Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the
public interest so to do, hereby exempts excisable goods falling within the Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986), if they are manufactured in a workshop within a factory
(hereinafter referred to as the said factory), from the whole of the duty of excise leviable thereon
which is specified in the said Schedule.
Provided that the excisable goods are used within the said factory, for repairs or
maintenance of machinery installed therein.

Reference:

For exemption to goods of sub-heading No. 2106.00 and Chapter 24 and

captively consumed for the manufacture of final goods of Chapter 24 please see
Notfn. No. 52/02-CE., dt. 17.10.2002 under Chapter 24

GENERAL EXEMPTION NO. 29

1031

GENERAL EXEMPTION NO. 29

Exemption from Additional duty of excise leviable under Sec. 85 of Finance Act 2005 in respect
of goods captively consumed.
[Notfn. No. 23/05-CE., dated 13.5.2005]
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise
Act, 1944 (1 of 1944) read with sub-section (3) of section 85 of the Finance Act, 2005 (18 of 2005),
the Central Government, on being satisfied that it is necessary in the public interest so to do,
hereby exempts all goods, produced and used within the factory of their production in the
manufacture of final product on which additional duty of excise is leviable under sub-section (1)
of section 85 of the said Finance Act, from the whole of the additional duty of excise, leviable
under said sub-section (1) of section 85 of the said Finance Act.